Residential MortgageCompliance Monitor

Missouri Modifies Provisions Regarding Real Estate Loan Reporting

by: Lee Greenberg, Esq.

The state of Missouri recently modified several provisions regarding the reporting of residential real estate loans through the enactment of Senate Bill No. 235. The new law has an effective date of August 28, 2013.
 
The current law requires the directors of the Division of Finance and the Division of Credit Unions to determine the number and total dollar amount of residential real estate loans originated, purchased or foreclosed as well as the number of residential real estate loan applications denied by financial institutions with offices in counties or cities with a population over 250,000. Directors are required to conclude whether such institutions violated state law and report such conclusions, along with information required by the Federal Home Mortgage Disclosure Act, to the Governor and the Director of the Department of Insurance Financial Institutions and Professional Registration.

Under Senate Bill No. 235, division directors are only required to report the following:

The number and type of state law violations which occurred;

  • A statement of the enforcement action taken in regards to the state law violations;
  • The names of the financial institutions which were found upon a hearing to have committed state law violations;
  • The number and nature of all complaints received by the department or division regarding alleged state law violations; and
  • The action taken on each complaint by the division.
In addition, the new law allows division directors to conduct hearings when they have reason to believe there is a violation based on an examination, investigation of a complaint, a report by the financial institution, or the contents of a public document. If the evidence establishes a violation of state law, the division director may issue a cease and desist order stating specifically the unlawful practice to be discontinued. If the director believes a violation of any provision of the order has occurred after the order becomes final, the division director may seek an injunction to prohibit such violations in any court of competent jurisdiction. For each violation of such injunction, the court mas assess a fine which may be recovered with costs by the state.


 
About the Author:
Lee Greenberg, Esq. is Assistant Vice President and Senior Counsel at Bankers Advisory, Inc. He is a graduate of the University of Colorado at Boulder and earned his Juris Doctor at the New England School of Law. Lee is admitted to the Massachusetts Bar. He can be reached at lee@bankersadvisory.com

Tags: , State Mortgage Compliance | Comments Off on Missouri Modifies Provisions Regarding Real Estate Loan Reporting

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Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.

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Residential Mortgage Compliance Monitor is an educational resource for financial institutions, providing announcements, legislative summaries, and policy changes issued by state and national regulators. Announcements also cover mortgage lending rules of HUD, Fannie Mae, Freddie Mac, and other mortgage agencies.